Startup Professionals Musings

AUGUST 26, 2018

Despite the fact that the number of IPOs (Initial Public Offerings) for startups have continued to stay low, I still hear it touted often as the preferred exit strategy. I suspect the exuberance for an IPO is still being driven by the highly visible successes of a few companies several years ago, including Facebook, Yelp, and Twitter.

Exit Strategy 128

Exit Strategy IPO Initial Public Offering SEC 128

Startup Professionals Musings

SEPTEMBER 14, 2022

With the current volatile economy, as an active startup mentor, I’m seeing a new surge of entrepreneurs and startups, with the commensurate scramble for funding. This approach is thus not viable for entrepreneurs already out of money. Increased jeopardy and less fun for the entrepreneur. It takes real money to get into the game.

Merger 261

Merger OTC IPO Due Diligence 261

Startup Professionals Musings

JUNE 6, 2014

With the recent apparent successes of several startups in taking their company public (initial public offering) and raising billions of dollars, I’m hearing a groundswell of enthusiasm from new entrepreneurs to follow in their footsteps to fund their companies and become billionaires overnight. In the first quarter of 2014, the U.S.

IPO 236

IPO Initial Public Offering Startup Small Business Administration 236

Startup Professionals Musings

JULY 3, 2015

The visibility of Google, Facebook and a few others continues to propagate the myth that the ultimate objective of every entrepreneur should be to take their startups public via an initial public offering at the earliest opportunity. Facebook, for example, ended up raising almost $16 billion through its IPO.

IPO 120

IPO Initial Public Offering Entrepreneur Private Equity 120

Startup Professionals Musings

FEBRUARY 1, 2015

In the old days, every entrepreneur dreamed of easily taking their startup public, and making it big. Today the rate of startups going public (IPO – Initial Public Offering) is up from the dead zone, but is still less than half the rate of 15 years ago. entrepreneur IPO m&a startup Stock Exchange' Marty Zwilling.

IPO 120

IPO SEC Prospectus Startup 120

Startup Professionals Musings

MAY 29, 2022

In the old days, every entrepreneur planned on taking their startup public, and making it big. Today the rate of startups going public (IPO – Initial Public Offering) is finally up from the dead zone of the last two decades, and is now double the rate back in 1999. Going public is an expensive process.

IPO 245

IPO SEC Prospectus Startup 245

Startup Professionals Musings

NOVEMBER 4, 2013

Many entrepreneurs still dream of “going public,” making billions of dollars, and playing with the big boys. They don’t realize that this option would likely be their worst nightmare, since it costs millions for the road show, usually dilutes your equity to a tiny fraction, and takes away all your entrepreneurial control.

IPO 224

IPO Founder Exit Strategy Investment Bankers 224

Startup Professionals Musings

SEPTEMBER 11, 2013

In the old days, every entrepreneur dreamed of someday taking their startup public, and making it a multi-national powerhouse. In my view, the key reasons that IPOs have lost their luster from an entrepreneur and investor perspective include the following: The US IPO process seems broken. Marty Zwilling.

IPO 242

IPO SEC Prospectus Startup 242

YoungUpstarts

OCTOBER 23, 2017

Legacy architecture in financial services, by contrast, is comprised of unique centralized databases, requiring the need and added cost of intermediaries to verify transactions between them (e.g. Founder of Duncan Capital LP , Joe Duncan is a FinTech entrepreneur, with a strong background in Cryptocurrency and Artificial Intelligence.

Technical Review 154

Technical Review Artificial Inteligence Software Review IPO 154

Startup Professionals Musings

DECEMBER 8, 2019

With the current strong economy, as an active startup mentor, I’m seeing a new surge of entrepreneurs and startups, with the commensurate scramble for funding. This approach is thus not viable for entrepreneurs already out of money. Increased jeopardy and less fun for the entrepreneur. It takes real money to get into the game.

Merger 303

Merger OTC IPO Due Diligence 303

Startup Professionals Musings

FEBRUARY 6, 2022

Many entrepreneurs I know are confused by the definition and need for an Advisory Board versus a Board of Directors. This Advisory Board is a good test drive for the more formal Board of Directors required later, when going public (IPO) or the entrance of venture capital investors. How much are you willing to spend on your board?

Advisory Board 348

Advisory Board IPO Angel Investor Acquisition 348

Startup Professionals Musings

AUGUST 6, 2023

With the advent and growth of crowdfunding over the past few years, many entrepreneurs have predicted the demise of angel investment groups and venture capital organizations. That’s not as high as the failure rate with professional investors, but it should convince entrepreneurs that crowdfunding is still no panacea for funding.

Angel Groups 201

Angel Groups Accredited Investor Due Diligence Equity 201

Both Sides of the Table

JUNE 22, 2011

This was an audience of mostly first-time entrepreneurs. It is great for entrepreneurs and great for VCs. So here is what I have been telling entrepreneurs privately for the past 6 months. And this is happening in mezzanine (pre-IPO) deals as well. And post IPO deals, although these tend to correct more quickly.

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

Startup Professionals Musings

NOVEMBER 25, 2020

With the advent and growth of crowdfunding over the past few years, many entrepreneurs have predicted the demise of those demanding angel investment groups and venture capital organizations. I would summarize the qualms and feedback from professional investors as the following: Crowdfunding platform costs trickle down to angel groups.

Equity 411

Equity Angel Groups Accredited Investor Due Diligence 411

ReadWriteStart

MARCH 31, 2020

Every expert agrees that VC investing faced a huge setback last year with the IPO flops of major companies such as WeWork, Uber, Slack, and Lyft as the facts show. This may probably drive entrepreneurs to alternative funding options, such as equity crowdfunding. Growth at any cost is not acceptable anymore. ”.

Technical Review 175

Technical Review Artificial Inteligence Startup Term Sheet 175

Startup Professionals Musings

OCTOBER 17, 2022

The cost of entry for tech startups continues to go down. Twenty years ago, it cost several million dollars to launch an e-commerce startup, which can be done today for a few thousand dollars. Mobile and web software apps may cost even less. The large investment amounts preferred by VCs are no longer needed to launch winners.

Angel Investor 342

Angel Investor Venture Capital Silicon Valley Portfolio 342

Both Sides of the Table

JULY 23, 2014

Lower costs to start a business (95% reduction), many more companies created & funded by angels / seed. Because this is all VCs do and if we intend to work with all of our fellow VCs and entrepreneurs when the rain ends and the sun shines again our reputations matter greatly.

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398

Hunter Walker

DECEMBER 11, 2023

It might ‘exit’ again at a later point (anything from a sale to an IPO), but it’s no long dependent on VC funding. Steering the company in that way has been a growth area for me as an entrepreneur and something as a CEO that I’ve been learning to do well. What does 2023 Daniel know that 2012 Daniel didn’t?

Private Equity 77

Private Equity Equity DC Leveraged Buyout 77

Both Sides of the Table

DECEMBER 27, 2011

I find it amusing when a journalist writes an article about a prominent startup (either privately held or preparing for an IPO) and decries that, “They’re not even profitable!” ” If you’re not profitable you’re purely a cost center to them. Cost of Goods Sold (COGS) =. Operating Costs.

Startup 418

Startup Revenue Technical Review Flash 418

Startup Professionals Musings

JANUARY 16, 2011

It has been at least a decade since going public via an Initial Public Offering (IPO) has been considered a credible exit strategy for startups. Usually a small company can sell about 20 percent of its stock in an IPO. In 1999, there were 486 IPOs nationwide; just 10 years later, in 2009, there were only 63. How’s the timing?

IPO 223

IPO Social Media Media Exit Strategy 223

Startup Professionals Musings

MARCH 3, 2021

Based on my own years of experience in startups and big business, and more recently as an angel investor, I often cringe when I see one of you entrepreneurs missing a cue that I have seen work for many before you. A passionate entrepreneur I met a while back had found that a certain algae could be grown cheaply, and could end world hunger.

Exit Strategy 406

Exit Strategy Merger Angel Investor IPO 406

Both Sides of the Table

JUNE 30, 2011

Or the Cliff Note’s version: Open Source & Cloud Computing (led by Amazon) drove down tech startup costs by 90%. That’s certainly good for our industry in terms of future returns for investors but I would argue also for entrepreneurs. The lower costs & lower barriers to entry support this.

Venture Capital 289

Venture Capital Early Stage Valuation Angel Investor 289

Startup Professionals Musings

AUGUST 7, 2021

Most entrepreneurs avoid setting up a board of directors for their new business unless or until they sign up an investor who demands a seat on the board. Too many members are difficult to schedule and manage, and cost too much. In my view, nothing could be further from the truth. In my view, nothing could be further from the truth.

Advisory Board 362

Advisory Board IPO Government Acquisition 362

Startup Professionals Musings

JANUARY 13, 2018

With the current strong economy, as an active startup mentor, I’m seeing a new surge of entrepreneurs and startups, with the commensurate scramble for funding. This approach is not for entrepreneurs already out of money. Increased jeopardy and less fun for the entrepreneur. It takes real money to get into the game.

Merger 198

Merger OTC IPO Due Diligence 198

David Teten

JANUARY 19, 2021

The value ascribed by subsequent investors (in a secondary); buyers (acquisition); or the public markets (IPO). See Why Are Revenue-Based Investors Investing in Women & Diverse Entrepreneurs? That said, nothing is cost-free. More complex cost of capital calculation. Volatile, uncapped. Flexible VC: Revenue -based.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Startup Professionals Musings

JULY 5, 2011

Many entrepreneurs still dream of “going public,” making billions of dollars, and playing with the big boys. They don’t realize that this option would likely be their worst nightmare, since it costs millions for the road show, usually dilutes your equity to a tiny fraction, and takes away all your entrepreneurial control.

Exit Strategy 235

Exit Strategy IPO Investment Bankers Entrepreneur 235

Startup Professionals Musings

MAY 3, 2014

With the uptick in the economy, as an active startup mentor, I’m seeing a new surge of entrepreneurs and startups, with the commensurate scramble for funding. This approach is not for entrepreneurs already out of money. Increased jeopardy and less fun for the entrepreneur. It takes real money to get into the game.

Merger 246

Merger OTC IPO Stock 246

Startup Professionals Musings

NOVEMBER 6, 2020

It seems that most of you entrepreneurs I meet in my role as business advisor are convinced that starting a new business requires equity investors, exponential growth, and a plan to go public via IPO. If your passion is customers, you definitely will be happier as a lifestyle entrepreneur.

Small Business 311

Small Business Small Business Administration SBA Equity 311

Startup Professionals Musings

JANUARY 19, 2020

The cost of entry for tech startups continues to go down. Twenty years ago, it cost several million dollars to launch an e-commerce startup, which can be done today for a few thousand dollars. Mobile and web software apps may cost even less. The large investment amounts preferred by VCs are no longer needed to launch winners.

Angel Investor 314

Angel Investor Venture Capital Silicon Valley Startup 314

Agile VC

MARCH 8, 2012

Tech IPOs Are Back – So Now What? Three of the five “blockbuster” tech IPOs I predicted have happened (LinkedIn, Groupon, Zynga) and the biggest of all (Facebook) has filed and will likely go public within the next 90 days. I see several dynamics at work in today’s IPO markets. March 8, 2012.

IPO 100

IPO Silicon Valley Revenue Seed Stage 100

Startup Professionals Musings

MAY 8, 2019

Image via Flickr by MDGovpics Many entrepreneurs I know are confused by definition and need for an Advisory Board versus a Board of Directors. This Advisory Board is a good test drive for the more formal Board of Directors required later, when going public (IPO) or the entrance of venture capital investors.

Advisory Board 247

Advisory Board IPO Angel Investor Startup 247

Startup Professionals Musings

AUGUST 7, 2016

Despite the fact that the number of IPOs (Initial Public Offerings) for startups have continued to decrease, I still hear it touted often as the preferred exit strategy. I suspect the exuberance for an IPO is still being driven by the highly visible successes of several companies a few years ago, including Facebook, Yelp, and Twitter.

IPO 120

IPO Initial Public Offering SEC Stock Options 120

Startup Professionals Musings

JULY 2, 2016

Most entrepreneurs avoid setting up a board of directors for their new business unless or until they sign up an investor who demands a seat on the board. Too many members are difficult to schedule and manage, and cost too much. In my view, nothing could be further from the truth. In my view, nothing could be further from the truth.

Advisory Board 145

Advisory Board Entrepreneur IPO Government 145

Agile VC

FEBRUARY 2, 2012

Facebook S-1: The Most Anticipated IPO in a Decade. Here’s my first look at Facebook viewed through the lens of their IPO filing. Facebook’s ad revenue is pure… after the cost of running the site is factored in, the rest just drops straight to the bottom line. How to Evaluate Firms for a Seed VC.

IPO 100

IPO South Korea Venezuela Revenue 100

NZ Entrepreneur

NOVEMBER 14, 2019

The IPO did not proceed. It is vital to know early on what IP protection a startup can have, what the benefits will be, and what the costs will be to secure such protection over time. However, the costs of keeping such secrets, or the cost of losing the secrets to your competitor, can also be high. The shotgun approach.

Intellectual Property 45

Intellectual Property IP Software Review New Zealand 45

Agile VC

APRIL 17, 2011

GameFly filed in 2010 and remains in registration, though 2011 has seen a positive start for VC-backed IPOs with 14 in Q1 2011. Now that Google’s acquisition of ITA is closed, following lenghty FTC review, it would appear Kayak is poised to proceed with their IPO in the coming months. =. Quinstreet priced at $15.00/sh

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

Agile VC

MARCH 13, 2012

And at PayPal we were hit with a couple patent disputes while in the midst of our IPO process. With Facebook in the late innings of its IPO process, Yahoo! in court if necessary even if it meant delaying their IPO slightly. So put in the context of Facebook’s IPO process and a new Yahoo! execs involved.

IP 100

IP IPO Social Network Silicon Valley 100